Neutral Host Model Gaining Traction in Private 5G, but Its Network Architecture Still Faces Key Challenges

In the last few weeks, Boldyn Networks, an infrastructure and neutral host provider in Europe, completed its acquisition of Smart Mobile Labs (SML), a German-based specialist in private 5G and mobile edge computing solutions. This strategic acquisition enhances Boldyn's ability to serve the growing demand for flexible, scalable private 5G networks, particularly in the industrial sector. The deal enables Boldyn to integrate SML’s expertise in deploying tailored 5G solutions for enterprise customers, as well as its deep technical know-how in mobile edge computing—key components for next-generation private 5G deployments.

SML’s expertise in developing tailored private 5G networks to meet the specific needs of industries like manufacturing and logistics aligns with Boldyn's neutral host approach. By leveraging SML’s existing relationships with German enterprises in industries like manufacturing and logistics, Boldyn is positioning itself as a key player in the rapidly growing private 5G market across Europe. This acquisition reflects the growing evolution of the private 5G ecosystem, signaling a shift toward more integrated, third-party infrastructure models tailored to meet the specific needs of enterprises, reducing reliance on traditional telco operators.

The acquisition of SML by Boldyn highlights the growing influence of neutral host providers in the private cellular space. While Boldyn's neutral host architecture plays a key role in the public network domain, its private 5G offerings are mainly driven by its acquisition of Edzcom, which specializes in dedicated private cellular networks. What sets this acquisition apart is SML’s deep expertise in industries like manufacturing and logistics, allowing Boldyn to offer tailored connectivity solutions for these sectors and enable more effective private 5G deployments.

Furthermore, this acquisition signals a shift toward more commoditized private 5G infrastructure, but it’s important to recognize that the success of neutral host providers like Boldyn goes beyond their technical offerings. While network architecture is essential, these providers have gained traction in the enterprise space due to business models being better aligned with evolving business needs. Neutral host providers like Boldyn stand out by offering customized, scalable solutions that cater to the specific needs of enterprises, unlike traditional telco operators with rigid, one-size-fits-all models. By adopting a consultative approach, these providers engage directly with enterprises, understanding their challenges and crafting flexible, agile solutions. This allows businesses to choose the best operators and technologies for their needs without being locked into costly and inflexible contracts. Additionally, simplified procurement processes and flexible agreements—often based on usage-based pricing or service-level commitments—make it easier for enterprises to access and scale private 5G networks, fostering a more accessible, cost-effective model. This shift toward more agile, business-driven solutions is making neutral host providers an increasingly appealing option for enterprises, especially those looking to deploy private 5G networks without the constraints of legacy telco models.

While neutral host models are gaining ground, the architecture itself remains far from a universal solution. The move toward multi-operator, standardized platforms does offer flexibility, allowing enterprises to choose the operator best suited to their needs, which could potentially spur greater competition and reduce reliance on a single telco provider. However, this is only part of the picture. In more remote or specialized locations, like industrial sites or rural areas with minimal infrastructure, enterprises may still prefer the reliability of a single operator that can provide a guaranteed, consistent service. In these environments, the promise of neutral hosts may fall short due to challenges around coverage and infrastructure availability. Moreover, even in more industrially developed areas, there are practical concerns about whether enterprises would be willing to share infrastructure with multiple operators. The integration of various services into a single platform raises questions about how to maintain the integrity and performance of each operator’s service. While the business model behind neutral hosts is appealing, the underlying architecture still has some work to do in order to fully meet the needs of enterprises. It will take more time for the technology to catch up to the expectations set by these more flexible business approaches.

While the involvement of traditional neutral host providers in private 5G networks offers significant potential, it also presents several challenges. Key issues include ensuring the secure isolation of traffic and data for each Mobile Network Operator’s (MNO) tenant, maintaining the integrity and performance of each operator's services, and fostering trust within the neutral host ecosystem to enable long-term collaboration between operators and enterprises. These obstacles need to be addressed to determine whether the neutral host model can become a viable and scalable solution for private 5G networks. To help overcome these challenges, here are some recommendations for infrastructure vendors, which play a crucial role in addressing many of these concerns:

• Evolving Network Architecture to Align with Business Models: Infrastructure vendors should shift their focus toward refining network architecture to better support the flexibility required by evolving business models in the private 5G space. This could involve developing more dynamic, software-driven network solutions that allow enterprises to rapidly adapt their network configurations based on changing needs. By leveraging technologies like network slicing and virtualization, vendors can enable highly customizable, on-demand network segments for different enterprise use cases, such as dedicated services for specific departments or critical applications, ensuring the network can quickly scale and adjust without compromising on performance or security. This flexibility is essential for neutral host providers that must meet diverse, dynamic enterprise demands, while maintaining service integrity across multiple MNOs.
• Optimizing MOCN and MORAN for Enterprise Requirements: Infrastructure vendors need to fine-tune Multi-Operator Core Network (MOCN) and Multi-Operator Radio Access Network (MORAN) architectures to better meet the unique needs of enterprises. This could involve customizing these frameworks to ensure more granular control over network integrity, traffic prioritization, and resource allocation. For example, ensuring that enterprise-specific data are handled in compliance with local data sovereignty laws and that the performance of each operator’s services remains consistent, even within a shared infrastructure, will be essential. Vendors should also explore incorporating customizable Quality of Service (QoS) parameters that cater to the specific requirements of different industries, such as manufacturing or healthcare.
• Enhancing Security Through Strategic Partnerships: To address the critical need for secure isolation of traffic and data within shared infrastructure, infrastructure vendors should seek partnerships with cybersecurity firms specializing in 5G security. These partnerships can help develop tailored security solutions that ensure end-to-end protection, particularly around data sovereignty and privacy concerns. Collaborative efforts can also focus on integrating advanced encryption and authentication protocols that are designed specifically for multi-tenant environments, ensuring that each MNO's data remain secure and separate from others.